Influencers, Bloggers and Other Individuals Earning Income Online
Do you post audio, video or written lifestyle, travel, food or gaming content to your social media? Do you get income, donations, gifts, sponsorships or promotional items in return? You may be an influencer.
Influencers
Highly active on social media, influencers use their status, position or media exposure to promote products for payment as part of companies' advertising campaigns. In other words, influencers are essentially paid representatives.
Influencers post content on a given subject (travel, food, makeup, video games, etc.) on social media platforms such as YouTube, Instagram, Facebook, Twitter or Twitch, where their knowledge and reputation give them exposure and attract followers. This ability to influence consumers with regard to goods and services is why companies seek them out and reward them in various ways.
Examples
If you engage in the following activities online, you may be considered an influencer.
Using the new phone you got for your birthday, you post videos of yourself dancing in various trendy spots on TikTok and Instagram.
You gain exposure and thousands of followers. A popular clothing company asks you to wear its products in your videos. In return, the company gives you more than $500 worth of products and pays you $2,500.
You are also approached by an energy drink company that wants you to promote its products in your videos. In return, it sends you a case of drinks per month and gift certificates for drawings among your followers.
Do you earn income from the digital economy?
Yes. Money, donations and gifts from companies that want you to promote their products and services are considered income. As a result, when you file your income tax return, you must provide information about your income and expenses.
Income
- Gross advertising revenue
- Gifts and donations
Expenses incurred to earn income, calculated according to percentage of commercial use
- Internet access fees
- Cellphone charges
- Depreciation of IT equipment (computer and software)
When you calculate your net income, you can deduct the reasonable expenses you incurred.
For more on the obligations arising from your activities as an influencer, contact a tax professional, click Self-Employed Persons or refer to the following:
You're a hardcore gamer with thousands of followers on YouTube. Your wins give you prizes and bonuses to keep playing your favourite games. You also play live on Twitch, where your followers can make cash donations.
You've also received paid trips to play in international tournaments. Video game companies send you new games to try out live and promote. One well-known company even gave you its latest console and wants to sponsor you in exchange for showing its logo in your videos.
Do you earn income from the digital economy?
Yes. Money, donations and gifts from companies that want you to promote their products and services are considered income. As a result, when you file your income tax return, you must provide information about your income and expenses.
Income
- Gross advertising revenue
- Gifts and donations
Expenses incurred to earn income, calculated according to percentage of commercial use
- Internet access fees
- Cellphone charges
- Depreciation of IT equipment (computer and software)
When you calculate your net income, you can deduct the reasonable expenses you incurred.
For more on the obligations arising from your activities as a gamer, contact a tax professional, click Self-Employed Persons or refer to the following:
Your many TikTok and Instagram followers have attracted the attention of several companies that want you to promote their products. Some of them pay you a commission for every new customer that uses a promotional code, while others give you freebies in exchange for showing their products: a car company gave you a car to use for two years free of cost, a property developer is letting you live in a condo for free, and several hotel chains let you stay for free, all in exchange for promoting the brands.
Do you earn income from the digital economy?
Yes. Money, donations and gifts from companies that want you to promote their products and services are considered income. As a result, when you file your income tax return, you must provide information about your income and expenses.
Income
- Gross advertising revenue
- Gifts and donations
Expenses incurred to earn income, calculated according to percentage of commercial use
- Internet access fees
- Cell phone charges
- Depreciation of IT equipment (computer and software)
When you calculate your net income, you can deduct the reasonable expenses you incurred.
For more on the obligations arising from your activities as a lifestyle influencer, contact a tax professional, click Self-Employed Persons or refer to the following:
You make YouTube videos about clothing and makeup. You earn advertising revenue from Google AdSense and get free products (makeup, clothes, etc.), some of which you use in your videos.
Do you earn income from the digital economy?
Yes. Money, donations and gifts from companies that want you to promote their products and services are considered income. As a result, when you file your income tax return, you must provide information about your income and expenses.
Income
- Gross advertising revenue
- Gifts and donations
Expenses incurred to earn income, calculated according to percentage of commercial use
- Internet access fees
- Cellphone charges
- Depreciation of IT equipment (computer and software)
When you calculate your net income, you can deduct the reasonable expenses you incurred.
For more on the obligations arising from your activities as a fashion influencer, contact a tax professional, click Self-Employed Persons or refer to the following:
Your sports and fitness blog attracts 5,000 views a day and has even gotten some media coverage. You run income-generating ads. Followers can also subscribe to your Patreon for exclusive content, and you sell custom training programs on your website and Fiverr.
The GoFundMe campaign you started to raise $50,000 to run a marathon actually brought in $65,000. You've also launched a Kickstarter campaign to raise money for your own line of activewear.
Do you earn income from the digital economy?
Yes. Money, donations and gifts from companies that want you to promote their products and services are considered income. As a result, when you file your income tax return, you must provide information about your income and expenses.
Income
- Gross advertising revenue
- Gifts and donations
Expenses incurred to earn income, calculated according to percentage of commercial use
- Internet access fees
- Cellphone charges
- Depreciation of IT equipment (computer and software)
When you calculate your net income, you can deduct the reasonable expenses you incurred.
For more on the obligations arising from your activities as an influencer, contact a tax professional or refer to the following:
Tax obligations
The income that influencers, bloggers and others make online comes from a variety of sources:
- advertising revenue generated by blog views
- donations from followers on platforms such as Twitch
- gifts (goods, benefits, donations, etc.) from companies
- services (trips, gift certificates, use of a car or condo, etc.) from companies
Any of these types of income may be considered business income. In some cases, you may be considered self-employed.
Regardless of your age, if you regularly or even ocasionally engage in activities in the digital economy, you must report the related income and expenses.
For more information on your potential obligations, click Self-Employed Persons or refer to the following:
Correcting an oversight
If you earned income online through social media, digital platforms or websites but did not report it, we encourage you to make the necessary corrections to avoid paying penalties and interest and to take advantage of relief measures.
See the pages below to find out how to make changes to a return for a previous year or put your tax file in order (for example, by correcting a GST or QST return)
Reporting your income doesn't necessarily mean you'll have to pay income tax. There are benefits, too:
- tax credits such as the work premium and solidarity tax credit
- eligibility for parental benefits
- increasing your RRSP contributions
- a retirement pension from Retraite Québec based on all your income
- a better financial profile for financial institutions
Report your income. It's fair for all.
Registers and supporting documents
If you carry on a business in Québec, you are required to keep registers. They can help us confirm your income and expenses and determine the amount you owe us or we owe you.
Your records and supporting documents (including electronic records) must generally be kept for at least six years after the end of the last taxation year they cover.
For more information, click Keeping Your Registers and Supporting Documents.